Revised Securities Market Law Approved

On October 24, 2015 the Official State Gazette published Legislative Royal Decree 4/2015, of October 23, 2015, approving the revised Securities Market Law. The new revised wording will come into force on November 13, 2015 (20 days after its publication date).

The aim behind this legislative instrument is to bring greater clarity and consistency to the Spanish securities market legislation, make it less piecemeal and improve its organization, so as to convert it into a better tool for use by both the regulator and the players daily taking part in business operations. The revised wording was prepared by including a set of rules of primary legislation relating to the securities market, which have been adjusted, clarified and organized as required under the authorization given in Law 20/2014, of October 29, 2014.

According to its preamble, certain adjustments have been made to the structure of the former Securities Market Law, by changing its numbering together with the references and cross-references it contains, to improve its organization and alter a number of inconsistencies. Additionally, another group of legal provisions on the subject has been inserted in the new wording to unify the set of legislation on the securities markets. The wording has also been prepared to transpose Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (which will be applicable on July 3, 2016) and, especially, the MIFID2 rules (Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014).